In 2018, the voters of the City of Purcell (the City) approved a new 1.0% dedicated hospital sales tax and extended an existing 1.0% capital improvement sales tax to provide funding for a new community hospital to replace a 1960s vintage hospital building that was costly to repair, maintain, and operate. As long time Financial Advisor to the City, Municipal Finance Services, Inc. (MFSOK) worked with City and hospital officials for approximately two years to develop a financing plan to provide funding for a new 34,500 square foot, 10-bed community hospital with emergency room, imaging, laboratory, and outpatient services.
When the time came to issue bonds in early 2020, the COVID-19 global pandemic struck, causing severe disruption in both the healthcare industry and public finance markets. MFSOK structured a cash funded reserve to provide additional security for investors and a capitalized interest fund to pay interest during the construction period. Amid concerns and uncertainty about the impact of the pandemic on sales tax revenues and municipal budgets, The Purcell Public Works Authority obtained an A- underlying rating from S&P Global Ratings. The Bonds were successfully offered by the underwriter through a negotiated sale.
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